Savings Rates Peak in Mid-Adulthood

Steps:

• Examine table percentages for each age group: 15-29 (lowest, e.g., 5%), 30-49 (moderate, e.g., 10%), 50-64 (highest, e.g., 20%), 65+ (declining, e.g., 8%).
• Compare values to identify the maximum savings rate.
• Confirm 50-64 exceeds all others, indicating peak saving behavior.
• Rule out misleading or partial interpretations.

Why C is correct:

• The table data reveals the 50-64 group allocates the largest share of income to savings, aligning with life-cycle hypothesis where mid-career earners maximize retirement contributions.

Why the others are wrong:

• A: The 15-29 range shows low, unequal savings, not total equal levels across ages.
• B: The 30-49 group saves more than 15-29, so it is not the lowest.
• D: While 65+ saves less than 30-39, this is a comparison, not the table's key conclusion of highest savings.

Final answer: C